Raise calculator: how much is your salary increase worth after taxes?

How this calculator works

This calculator compares take-home pay before and after a raise using the same tax model as the paycheck calculator. Enter your current annual salary, new annual salary, pay frequency, filing status, per-period pre-tax deductions, and state income tax rate. The results show both scenarios side by side, then highlight the after-tax delta — extra take-home per paycheck and per year, plus how much of the gross raise goes to taxes.

Federal income tax uses 2026 brackets after subtracting pre-tax deductions and the standard deduction. Social Security is 6.2% up to the wage base; Medicare is 1.45% on all wages (plus the 0.9% additional Medicare tax above the applicable threshold). State tax applies at the rate you enter. Pre-tax deductions are held constant across both salaries so the comparison isolates the raise itself — change that field if you plan to increase 401(k) or HSA contributions with the raise.

This is a planning estimate. Actual withholding depends on your W-4, local taxes, and plan-specific rules. Verify against your first post-raise pay stub.

Why gross raise ≠ net raise

Your raise is taxed at your marginal rate — the rate on the next dollar of income — not your effective (average) rate. Existing salary already fills lower brackets; new dollars start where that salary left off. FICA (Social Security and Medicare) also applies to virtually all of the increase. In a moderate-tax state, a 10% gross raise often translates to roughly 5–7% more take-home pay.

That gap surprises people who budget as if the full raise will land in checking. If your offer letter shows a $8,000 raise, do not plan an $8,000 lifestyle upgrade. Run this calculator first, then decide how much of the net increase goes to savings, debt, or spending. Treating the tax share as “already spent” keeps the rest of the raise from disappearing into lifestyle creep.

Bracket cliffs matter too. Crossing into a higher federal bracket does not re-tax your whole salary at the higher rate — only the dollars above the threshold. Still, those top dollars face a higher combined federal + FICA + state bite, which is why two people with similar percentage raises can see different take-home outcomes depending on where they sit in the tables.

Using the result for 401(k) and HSA decisions

A raise is one of the easiest moments to increase retirement deferrals: you have not yet adjusted spending to the higher paycheck. Redirecting part of the raise into a traditional 401(k) shelters that portion from income tax at your marginal rate. Model a higher pre-tax deduction in this calculator, then refine the long-term impact with the 401(k) contribution calculator.

The same idea applies to an HSA if you have a qualifying high-deductible plan. Raising HSA contributions with a raise locks in the triple tax advantage while your take-home still feels like a win. Check current year limits in the HSA contribution limits guide and the HSA calculator.

If your employer match is below the plan maximum, prioritize capturing the full match before you treat any of the raise as discretionary spending. Unmatched dollars left on the table are an immediate, risk-free loss relative to contributing.

State tax and W-4 notes

The default 5% state rate is an approximation for a typical moderate-tax state — not a national average. Enter 0% if you live in a no-income-tax state, or your actual marginal state rate if you know it. After a large raise, also revisit Form W-4 so withholding keeps pace with your new liability; see the W-4 withholding calculator and the W-4 withholding guide.

Large mid-year raises are a common cause of April balances due: withholding formulas lag your new annualized income. Extra withholding in W-4 Step 4(c), or an estimated payment, can close the gap before filing season. Pair that adjustment with a quick pass through the income tax estimator if you want a full-year liability check.

Local income taxes (city or county) are not modeled here. If you pay a local wage tax, treat it like an add-on to the state rate for a closer take-home estimate.

Comparing offers and promotions

Use this tool when you have two salary numbers — current vs. offer, or current vs. promoted band — and need the after-tax story in dollars per paycheck. A higher base salary in a high-tax state can lose to a slightly lower salary in a no-income-tax state once FICA and federal brackets are applied. The calculator will not value equity, bonuses, or benefits, so keep those on a separate scorecard; it answers the cash-flow question cleanly.

For hourly workers converting a raise into annual impact, annualize the new rate first (hourly × expected hours), then enter both annual figures. That keeps the tax engine consistent with W-2 annual modeling.

When to use this calculator

Use it when evaluating a promotion or market adjustment, comparing offers with different salaries, converting an hourly raise to annual take-home impact, or deciding how much of a raise to save versus spend. For a full single-paycheck breakdown without a before/after view, use the paycheck calculator. For the conceptual walkthrough, read how much is a raise worth after taxes.

If the raise comes with a filing-status change (marriage) or a large side-income shift, also skim the marriage financial checklist and the side income tax calculator so the whole household picture stays consistent.